Barrick profit drops 90% but beats estimates, cuts 2014 copper outlook

|About: Barrick Gold Corporation (ABX)|By:, SA News Editor

Barrick Gold (ABX) +0.3% premarket after reporting a 90% drop in its Q1 earnings to $238M from $923M a year ago due to lower metal prices and gold sales volume, but results came in slightly ahead of analyst expectations.

Q1 gold production fell to 1.59M oz. from 1.8M oz. a year earlier, while average realized gold prices were $1,285/oz. vs. $1,629/oz. a year ago.

All-in sustaining cash costs fell to $833/oz. from $933/oz. a year earlier; for the year, ABX maintains its forecast for all-in sustaining cash costs of $920-$980/oz. and gold production of 6M-6.5M oz.

Cut its 2014 copper production guidance to 410M-440M lbs. from 470M-500M lbs. after damage to the main conveyor at its Lumwana mine in Zambia halted processing there.

The earnings come ahead of founder Peter Munk’s final meeting as ABX chairman and two days after collapse of merger talks with Newmont Mining.